Light Trade, Might Be Good To Fade
Each morning this list will contain those stocks with the potential to
make a quick but tradable move in the first hour. The information listed
here is designed for the trader who catches the early morning momentum, between
the first five and 45 minutes of trading. Many stocks open each morning, run for
several points and then reverse. I will cover stocks with this potential and
highlight possible reversal points and resistance areas. These points need to be
monitored closely, as the stocks may turn quickly here. Be ready to lock in
profits quickly.
Morning Outlook
The S&P futures are +0.60 and the
Nasdaq futures are +13.00.
Watch for a turnaround in the first 10-30 minutes of trading. Keep an eye
on the stocks that gap the most in the morning. Use the Nasdaq tracking
stock (QQQ)
or futures as leading indicators.
Heading Up (at the
open)
Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating) is trading up one point on 62,000+ shares. The
stock hit a new all-time high on Tuesday. The only bit of overhead resistance is
at 119. If it turns around, look for support at 117 3/8 and 115 1/4.
Ciena is trading up 3 points. It looks to gap over resistance at 171. Watch
for more trouble tat 175 3/8 and 179 1/2. CIEN is only a few points off its July
highs. In a reversal, look for early support at 171 and 170 1/4.
Kana Communications
(
KANA |
Quote |
Chart |
News |
PowerRating) is trading up almost 4 points on strong
volume. Resistance may be found at 37 and 38 3/8. The stock has been in a
trading range for the last few weeks near its lows. A move above 38 1/2 would
take it out of the range, perhaps providing other long opportunities. The 50-day
MA is far off at 50 5/8.
Sycamore Systems
(
SCMR |
Quote |
Chart |
News |
PowerRating) is trading up 3 points. There may be resistance
at 150 13/16. It’s been forming a mid-level cup for the last few weeks. If it
turns around, look for support at 147 and 145.
BEA Systems
(
BEAS |
Quote |
Chart |
News |
PowerRating) is up 6 points on strong volume. It bounced off the
50-day MA on Tuesday at the close. Look for resistance at 55 1/2 and 57